APSET Paper 2 Mock Test - 5 (Commerce) - AP TET MCQ

The correct answer is A ‐ lV, B ‐ lll, C ‐ ll, D ‐ l.

Key PointsGoods - Section 2(7) of the Sale of Goods Act, 1930 defines "goods" to include all transportable property types, such as stocks, shares, crops, grass, severable objects, etc.

Important PointsActionable claim-  Any debt that is connected to a benefit derived from movable property that is not in possession and for which relief can be sought in civil court is referred to as a "actionable claim." Further It means that if no action is made to realise the claim, it cannot be regarded to be an actionable claim for the reason that no action was taken to realise it.

Appropriation of goods- Appropriation of goods under the sale of goods act,1930 as follows -

1. Deliver as per description - The property in the goods passes to the buyer when there is a contract for the sale of undetermined or future goods by description and goods matching that description and in a deliverable state are unconditionally appropriated to the contract, either by the seller with the buyer's consent or by the buyer with the seller's consent. Before or after the appropriation is made, this assent may be given and may be expressed explicitly or inferred. 
2. Delivery to carrier - When the seller delivers the products to the buyer, a carrier, or another bailee (whether or not identified by the buyer) in accordance with the contract and does not reserve the right to dispose of the goods, he is understood to have unreservedly appropriated the goods to the contract.

Existing goods- According to section 6 of sales of goods act 1930,those goods as are existence at the time of the contract of sale or those goods owned or possessed by the seller at the time of contract of sale. There are three types of existing goods - 

• Specific Goods 
• Ascertained Goods
• Unascertained Goods

Future goods - According to Section 2(6) of Sales of goods Act 1930, those goods are to be manufactured or produced or acquired by seller after making of contract of Sale. For examples, A agrees to B to sell all wheats to be produced in his field this years.

A) Fair Value = Rs. 1,80,000

B) Municipal Value = Rs. 1,50,000

C) Higher of A and B = Rs. 1,80,000

D) Standard Rent = Rs. 1,60,000

E) Expected Rent (Lower Of C and D) = Rs. 1,60,000

F) Actual Rent = Rs. 2,40,000 (20000 12 Months)

GROSS ANNUAL VALUE (Higher Of E and F) = Rs. 2,40,000

NET ANNUAL VALUE = Gross Annual Value (2,40,000) - Unrealised Rent (40,000) - Municipal Tax (30,000) = Rs. 1,70,000

The correct answer is Foreign assets/Total assets : Foreign sales/Total sales and Foreign employment/Total employment.

Key Points The UNCTAD Transnationality Index (TNI) is a composite measure of the foreign activities of transnational corporations (TNCs). It is calculated as the average of three ratios:

• Foreign assets to total assets: This ratio measures the extent to which a TNC's assets are located abroad.
• Foreign sales to total sales: This ratio measures the extent to which a TNC's sales are generated from abroad.
• Foreign employment to total employment: This ratio measures the extent to which a TNC's employment is located abroad.
• The higher the TNI, the more transnational the TNC. A TNI of 100 means that all of a TNC's assets, sales, and employment are located abroad. A TNI of 0 means that none of a TNC's assets, sales, and employment are located abroad.

The TNI is a useful tool for measuring the extent of globalization and the impact of TNCs on the global economy. It is also used by governments and businesses to make decisions about trade and investment policies.

The correct answer is (b) Reserve Bank of India (RBI).

Regional Rural Banks (RRBs) are a part of the Reserve Bank of India (RBI) regulatory framework. They are classified as Scheduled Commercial Banks and are subject to the RBI's regulations and supervision. The RBI issues licenses to RRBs and monitors their financial performance and adherence to regulatory standards.

The other options are incorrect:

(a) National Bank for Agriculture and Rural Development (NABARD): NABARD is a development finance institution that provides financial assistance and refinance to RRBs, but it is not a regulatory body for RRBs.

(c) Ministry of Finance: The Ministry of Finance provides policy guidance and oversight for the banking sector, including RRBs, but it is not the regulatory body for RRBs.

(d) Ministry of Rural Development: The Ministry of Rural Development is responsible for implementing rural development programs, but it is not the regulatory body for RRBs.

Therefore, RRBs are a part of the RBI's regulatory framework and are subject to its oversight and supervision. The RBI plays a crucial role in ensuring the financial stability and sound operation of RRBs.

Statement (i) is correct. The greater a firm's degree of operating leverage, the more its EBIT will vary with fluctuations in sales as it is computed by dividing the contribution by operating profit.

The higher the degree of operating leverage (DOL), the more sensitive a company's earnings before interest and taxes (EBIT) are to changes in sales, assuming all other variables remain constant. The DOL ratio helps analysts determine what the impact of any change in sales will be on the company's earnings.

The correct answer is ​A- I, B- III, C- II, D- IV

Key Points

Normal distribution:

• A normal distribution, also known as a Gaussian distribution, is a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.
• In graphical form, the normal distribution appears as a "bell curve".
• The height of individuals in a population often follows a bell-shaped curve, where the majority of individuals cluster around the mean height, with fewer individuals at the extreme ends.

Weibull distribution:

• The Weibull distribution is a continuous distribution that can be used to model the time to failure of a product.
• It has two parameters, shape and scale, that can be used to fit the distribution to the data.
• The shape parameter determines the shape of the distribution, and the scale parameter determines the scale of the distribution.
• The Weibull distribution is often used to model the lifetimes or failure times of devices or systems.
• It can describe both the early failure period characterized by a decreasing failure rate (infant mortality) and the later failure period characterized by an increasing failure rate (wear-out).

Exponential distribution:

• The period before a certain event occurs is frequently the focus of the continuous probability distribution known as the exponential distribution.
• Events occur continually, independently, and at a steady average pace during this process.
• The Exponential distribution is commonly used to model the time between events in a Poisson process.
• In the context of daily sales, it can represent the time intervals between consecutive sales events.

Poisson distribution:

• The Poisson distribution is a discrete distribution that can be used to model the number of events that occur in a fixed interval of time or space.
• It has one parameter, lambda, which is the expected number of events in the interval.
• The Poisson distribution is a good choice for modeling the number of defects in a production line because it can model a variety of defect patterns.
• The Poisson distribution is commonly used to model the number of rare events occurring in a fixed interval of time or space.
• In the context of defects in a production line, it can represent the number of occurrences of defects within a given time or space interval.

Hence, the correct answer is A- I, B- III, C- II, D- IV. 

The correct answer is They are directly involved in financial decisions taken in the organization.

Key Points

Operational management:

• Operational management at supervisory levels is primarily focused on overseeing and coordinating the day-to-day activities of a specific operational unit or department within an organization.
• While they play a crucial role in ensuring smooth operations and achieving operational goals, their involvement in financial decisions is generally limited.
• Financial decisions are usually handled by higher-level managers or the finance department.

Important Points

Examining the options:

They are responsible for improving the quality of output:

• Operational managers at supervisory levels are indeed responsible for monitoring and improving the quality of output.
• They oversee the production process, ensure adherence to quality standards, and implement quality improvement initiatives.

They come from the lowest level of management:

• \Operational managers at supervisory levels are typically positioned at the lower levels of the management hierarchy.
• They directly supervise the operational workforce and coordinate their activities to achieve organizational objectives.

They directly observe that safety standards are followed:

• Ensuring workplace safety is an important responsibility of operational managers at supervisory levels.
• They are responsible for implementing and enforcing safety policies and procedures, conducting safety inspections, and promoting a safe working environment.

Based on the above analysis, it is clear that option 1) They are directly involved in financial decisions taken in the organization is not directly related to the role of operational management at supervisory levels. Financial decisions are typically handled by higher-level managers or specialized finance professionals.

The correct answer is Sustainability.

Key Points

As per the passage 

• "Furthermore, as awareness of environmental and societal concerns has risen, businesses are endeavoring to factor in sustainability into their service design and delivery."

  • This sentence explains how sustainability is being increasingly considered in service design and delivery in India.

The correct answer is It has become more multifaceted.

Key Points

As per the passage:

• "Therefore, service marketing in India has transformed into a multifaceted domain that balances complex business, customer, and societal demands in its broad scope."

  • This sentence shows how the scope of service marketing in India has become more multifaceted.

• I is correct as the populists chose a person who is a Eurosceptic economist as their finance minister.

Refer to: ‘Foreigners are also unlikely to have suffered much direct harm from the fall in bond prices (the corollary of rising yields).’

• II is correct.
• III has not been mentioned in the passage and is incorrect.
• Only I and II are correct.

Statement II is correct. When investors lose confidence in the markets, the bond yields increase.

Statement III is correct as investors have been shifting from Italian to German bonds which provide more safety. This led to a decrease in the yields of the bonds.

Key Points

• A stereotype is a fixed, overly generalised belief about a certain group or class of people that is used in social psychology.
• Stereotyping implies that an individual possesses a wide range of characteristics and abilities that we presume all members of that group share.
• For instance, a "hells angel" biker wears leather clothing.

Important Points

Stereotyping: 

• A stereotype is a preconceived idea that is fixed and overly generalised about a certain group or class of individuals.
• These presumptions rest on the false assumption that each member of the group shares a particular set of traits.
• Many stereotypes are a direct result of numerous political, social, or economic events and have a lengthy and occasionally contentious history.
• Making assumptions about a person or group of individuals based on criteria such as gender, race, religion, or physical characteristics is known as stereotyping.

Additional Information

1. Halo effect: A form of cognitive bias known as the "halo effect" occurs when our overall opinion of a person affects how we feel and think about their character. In essence, your assessment of a person's general impression ("He is kind!") affects your assessment of that person's specific characteristics ("He is also brilliant!"). People's perceptions of one quality can influence their perceptions of other characteristics. Our perception of celebrities as a whole is a terrific illustration of the halo effect in action. People prefer to view them as bright, kind, and amusing since they are viewed as attractive, successful, and frequently likeable.
2. Attribute: The word "pay tribute" and "attribute" have a similar meaning. In this way, a prize winner who honours a motivational lecturer is in a way crediting her success to the professor.
3. Assimilation: In anthropology and sociology, assimilation refers to the process through which people or groups with different ethnic ancestries are assimilated into the dominant culture of a society.

The correct answer is "Indirect communication among sellers and potential buyers".

Key Points

• The goal of promotion is to communicate to consumers that they need this product and that it is priced appropriately.
• Promotion encompasses advertising, public relations, and the overall media strategy for introducing a product.
• Promotion is a marketing tool, used as a strategy to communicate between the sellers and buyers.
• Through this, the seller tries to influence and convince the buyers to buy their products or services. ​

Additional Information

• It assists in spreading the word about the product or services or company to the people.
• The company uses this process to improve its public image.
• This technique of marketing creates an interest in the mindset of the customers and can also retain them as a loyal customer.
• Promotions tend to focus on how to attract the attention of consumers and motivate them to take action or make a purchase via eCommerce or other channels.
• Ensure the right consumers are reached and objectives are met.
• In order to accomplish this, brands must look closely at the many ways to market/promote and decide which methods are most likely to reach the desired consumer demographic. 

The correct answer is Neither (i) nor (ii)

Key Points

•  Neither the level of labor (i) nor capital (ii) is constant along an isoquant.
• An isoquant represents all combinations of two inputs, often labor (L) and capital (K), that yield the same level of output. Therefore, the only thing that remains constant along an isoquant is the quantity of output produced.
• As you move along an isoquant, the amounts of labor and capital used in production change, but the total output remains the same. For instance, a firm may decide to use more labor and less capital, or vice versa, but if it is still on the same isoquant, the total level of output will be constant.

Important Points Here are some additional points about isoquants:

1. Shape: Isoquants, similar to indifference curves in consumer theory, are downward-sloping and convex to the origin. This represents the tradeoff between the two inputs—capital and labor—and reflects the principle of diminishing marginal returns.
2. Marginal Rate of Technical Substitution (MRTS): The slope of the isoquant at any point is known as the MRTS. This refers to the ratio at which a firm can substitute between two inputs while maintaining the same level of output.
3. Contour Lines of a Production Function: Just as topographical maps have contour lines indicating different elevations, isoquants can be thought of as contour lines of a production function. Each isoquant represents a particular level of output.
4. Isoquant Map: A map of isoquants for different levels of output is known as an isoquant map.
5. Non-intersection: No two isoquants can intersect each other. Each isoquant corresponds to a different level of output, meaning a point cannot simultaneously yield two different levels of output.
6. Distance from the Origin: Isoquants that are further from the origin represent higher levels of output, just as indifference curves further from the origin represent higher levels of utility.

The concept of isoquants is fundamental for understanding how firms make decisions about the optimal combination of inputs, given their prices, to produce a certain level of output. This decision, made at the point where the isoquant is tangent to the firm's budget constraint, plays a crucial role in cost minimization and profit maximization.

Additional Information An isoquant is a contour line drawn through the set of points at which the same quantity of output is produced while changing the quantities of two or more inputs. It is a graphical representation of a production function, often used to depict the combination of inputs (usually capital and labor) that will produce a certain level of output.

The term "isoquant" comes from the prefix 'iso' meaning 'equal' and 'quant' referring to quantity. Therefore, an isoquant represents all combinations of inputs that yield the same ("iso") quantity ("quant").

Key characteristics of isoquants include:

• They are downward sloping (from left to right), representing that if the use of one input decreases, the use of another input must increase to maintain the same level of output.
• They are convex to the origin. This characteristic reflects the law of diminishing marginal rates of technical substitution, which states that as more of one input is used, keeping output constant, increasingly larger amounts of the other input must be given up.
• Isoquants cannot intersect. Each isoquant represents a different level of output, and a point in space cannot correspond to two different levels of output.
• The farther an isoquant is from the origin, the greater the level of output it represents.

The correct answer is Organising.

Key Points Among the given options, the managerial function of staffing is most closely related to "organizing."

Here's how they are connected:

Staffing: Staffing involves acquiring and organizing the workforce to ensure that the right people are in the right positions. This process includes recruitment, selection, training, and development to structure the organization's human resources effectively.

Organizing: Organizing is one of the primary functions of management and is concerned with designing the structure of the organization. This includes defining roles and responsibilities, establishing reporting relationships, and ensuring that resources, including personnel, are allocated appropriately to achieve the organization's goals.

While staffing is specifically focused on acquiring and managing human resources, the broader process of organizing sets the framework for how those human resources are integrated into the organizational structure.

The correct answer is Unsystematic risk.

Key Points The risk arising from the unique uncertainties of individual securities is known as unsystematic risk or specific risk.

Unsystematic risk is the risk that is unique to a particular security or asset. It is the risk that cannot be diversified away by holding a well-diversified portfolio.

Additional Information Some examples of unsystematic risk include:

• Company-specific risk: This is the risk that is related to the specific company, such as the risk of a product recall or a lawsuit.
• Industry-specific risk: This is the risk that is related to the industry that the company operates in, such as the risk of a decline in demand for the product or service that the industry provides.
• Country-specific risk: This is the risk that is related to the country in which the company is located, such as the risk of political instability or economic sanctions.

Unsystematic risk can be reduced by diversification. Diversification means holding a portfolio of assets that are not perfectly correlated with each other. This means that the risk of one asset will not perfectly offset the risk of another asset

The correct answer is 1972.

Important Points

• The entire general insurance business in India was nationalized by General Insurance Business (Nationalisation) Act, 1972 (GIBNA).
• The Government of India (GOI), through Nationalisation, took over the shares of 55 Indian insurance companies and the undertakings of 52 insurers carrying on general insurance business.
• General Insurance Corporation of India (GIC) was formed in pursuance of Section 9(1) of GIBNA.
• It was incorporated on 22 November 1972 under the Companies Act, 1956 as a private company limited by shares.
• GIC was formed for the purpose of superintending, controlling, and carrying on the business of general insurance.
• As soon as GIC was formed, GOI transferred all the shares it held of the general insurance companies to GIC.
• Simultaneously, the nationalized undertakings were transferred to Indian insurance companies.

A company can be compared to a river, which maintains its identity. Although the parts from which it is made are constantly changing. The suitable characteristic here is Continuous succession.

• A company is capable to survive beyond the lives of its members.
• As a company is created by law therefore it can be dissolved only by law alone and it remains unaffected by the change, lunacy, retirement, death, or insolvency of its members
• The members of the company may come and go but a company goes on forever and remains the same entity
• The existence of the company continues even if its all members are dead.
• There can not be a succession forever without the incorporation.

1. Limited liability: An Limited Liability Company (LLC) is a type of business in which the owners are called members. The business entity is separate from the members so only the entity may be held liable if the company is sued or fails to pay its debts. An LLC contains elements of a sole proprietorship, a partnership, and a corporation.
2. An artificial person is an entity created by law and given similar legal rights and duties to that of a human being. It can be real or imaginary and for the purpose of legal reasoning is treated more or less as a human being. 

1 - beta = 1 - 0.10 = 0.90

Key-Points

A unimodal distribution:

• A unimodal distribution has only one clear peak.
• Initially, the value goes on increasing up to a certain highest point and then starts decreasing.
• A unimodal distribution can either be symmetric or unsymmetric distribution. 

A symmetric distribution:

• A symmetric distribution is where all the values of mean, median, mode are equal.
• In such distribution, the interval of gains and losses display the same frequency.
• A distribution that differs from symmetrical distribution is known as unsymmetrical distribution and that is where we get positive skewness and negative skewness.

If the distribution is symmetric then the mean is equal to the median and the distribution will have zero skewness. And in addition to this, if the distribution is unimodal then mean = median = mode.

Therefore, in a unimodal and symmetric distribution, the relationship between averages is like mean = median = mode.

The correct answer is A, B, D and E only.

Key PointsThe correct features of principles of management are:

A. Flexibility: The principles of management are flexible and can be adapted to different situations and contexts. They provide general guidelines that can be applied in various organizational settings, allowing for flexibility in their application.

B. Universal application: The principles of management are applicable across different industries, sectors, and organizations. They provide fundamental concepts and principles that can be universally applied to manage and lead organizations effectively.

D. Based on situation: The principles of management are not absolute and fixed. They consider the specific circumstances and context in which they are applied. Managers need to adapt and apply the principles based on the unique situations they face.

E. Derived out of experience: The principles of management are derived from the experiences, observations, and studies of successful managers and organizations over time. They are based on practical knowledge gained from managing and leading organizations.

Therefore, the correct features of the principles of management are A. Flexibility, B. Universal application, D. Based on situation, and E. Derived out of experience.

The correct option is Relationship.

Key Points

• The business sector started using the term Customer Relationship Management (CRM) in the early 1990s.
• It was the time when the concept of business transitioned from being transactional to relational.
• Use of CRM contributes towards customers’ benefits and growth of businesses.
• Information Technology plays a major role in identifying, acquiring, and retaining customers, and thereby maintaining a healthy relationship with them.
• Some of the important ingredients of an ideal CRM are : Analytics, Business Reporting, Customer Service, Human Resource Management, Lead Management, Marketing, Sales Force Automation etc.

Trade-Related Aspects of Intellectual Property Rights (TRIPs) - Doha Ministerial Conference.

Intellectual property rights are the rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time.  

The Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement requires members of the WTO to set minimum standards of legal protection, but its objective to have a “one-fits-all” protection law on Intellectual Property has been viewed with controversies regarding differences in the development level of countries.

Despite the controversy, the agreement has extensively incorporated intellectual property rights into the global trading system for the first time in 1995, and has prevailed as the most comprehensive agreement reached by the world.

The correct answer is Audit Programme

Key PointsAudit memorandum means a memorandum or letter issued during the course of an audit for eliciting information, confirmation of facts, or any other matter considered necessary by the audit officer in the conduct of an audit.

Audit Planning refers to the design of an audit describing the overall audit strategy and guidelines to follow while performing the audit. It helps in the successful completion of the audit process.

An audit notebook is maintained by the staff of the auditor to record the difficulties, mistakes, and errors noticed during the course of the audit to discuss further with the seniors or auditor before finalizing the audit report.

An audit programme is an action plan that documents what procedures an auditor will follow to validate that an organization is in conformance with compliance regulations.

Additional Information An audit program also called an audit plan, is an action plan that documents what procedures an auditor will follow to validate that an organization is in conformance with compliance regulations.

The goal of an audit program is to create a framework detailed enough for any outside auditor to understand. It should contain the following information:

• the official examinations that have been completed;
• conclusions reached; and
• the reasoning behind each conclusion.

Correct match: